CITY OF GAINESVILLE BOARD OF EDUCATION - HALL'COUNTY -TABLEOFCONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXHIBITS 
 
GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUPS 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
6 
 
C 
 
,COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS . 
 
8 
 
D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
9 
 
ADDmONAL FINANCIALINFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
22 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
24 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
26 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
. AND CHANGES IN FUND BALANCES 
 
28 
 
DEBT SERVICE FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
30 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
ANt> CHANGES IN FUND BALANCES 
 
31 
 
K 
 
FIDUCIARY FUND TYPE 
 
, 
 
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
AGENCY FUNDS 
 
I 
 
32 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY - TABLE OF CONTENTS - 
( 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
2 SCHEDULE OF STATE REVENUE 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
4 
 
BY PROGRAM 
 
5 
 
BY SITE 
 
Page, 
33 35 37 38 39 
 
SECTIONll 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 
 
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 " 1>" 
 
RUSSELL W. HINTON 
STATE AUDITOR (404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS w.. 254 Washington Street. S. Suite 214 
Atlanta, Georgia 30334-X400 
September 27,2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general-purpose financial statements ofthe City of Gainesville Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe City ofGainesville Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. 
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAnierica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows: 
 
2002ARL-13 
 
 * School activity accounts are included in the general-purpose financial statements as 
agency funds. To conform to generally accepted accounting principles, the activity of these accounts should be included in the general-purpose financial statements in the appropriate fund and fund type. 
The aggregate effect on the general-purpose financial statements ofthis variance or omission has not been determined, but are believed to be material. 
In our opinion, except for the effects on the general-purpose financial statemerits of the matter referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Gainesville Board of Education as ofJune 30, 2002, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 
In accordance with Government Auditing Standards, we have also issued our report dated September 27,2002, on our consideration ofthe City of Gainesville Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 
( Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the City of Gainesville Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-I33, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matter referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. 
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. 
Respectfully submitted, 
~~~ Russell W. Hinton State Auditor 
RWH:as 2002ARL-13 
 
  .I 
CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 2002 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
General Fixed Assets Land BUildings Equipment 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of: Bond Debt For Long-Tenn Debt Agreement Capital Lease Agreements 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 3,656,627.27 $ 248,918.84 $ 12,750,892.00 
 
14,033.91 
 
4,137,039.85 
 
526,085.14 
 
20,945.24 11,659.20 
 
Total Assets 
 
$ 7,793,667.12 $ 821,642.33 $ 12,750,892.00 
 
The notes to the general-purpose financial statements are an integral part of this statement. -2- 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE AGENCY FUNDS 
 
$ 1,452,812.41 $ 
 
202,871.05 
 
22,176.73 
 
686,053.30 
 
ACCOUNT GROUPS 
 
GENERAL 
 
GENERAL 
 
FIXED 
 
LONG-TERM 
 
ASSETS 
 
DEBT 
 
TOTALS (Memorandum Only) JUNE 30, 2002 . JUNE 30, 2001 
 
$ 18,312,121.57 $ 6,026,891.14 
 
36,210.64 
 
1,779,008.07 
 
5,349,178.29 
 
4,589,555.74 
 
20,945.24 . 11,659.20 
 
19,392.40 15,078.93 
 
$ 3,985,696.84 40,572,361.63 7,891,149.91 
$ 2,138,865.71 
 
3,985,696.84 40,572,361.63 
7,891,149.91 
2,138,865.71 
 
194,840.76 37,628,288.24 
8,016,937.69 
2,595,101.87 
 
17,871,134.29 6,920,000.00 1,378.495.63 
 
17,871,134.29 6,920,000.00 1,378.495.63 
 
4,634,898.13 7,505,000.00 1,073,526.04 
 
$ 2,138,865.71 $ 
 
225,047.78 $ 52,449,208.38 $ 28,308,495.63 $, 104.487,818.95 $ 74,078,519.01 
 
-3- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2002 
 
Total Liabilities and Fund Equity 
 
$ 7,793,667,12 $ 821,642,33 $ 12,750,892.00 
 
The notes to the general-purpose financial statements are an integral part of this statement. -4- 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE AGENCY FUNDS 
 
ACCOUNT GROUPS 
 
GENERAL 
 
GENERAL 
 
FIXED 
 
LONG-TERM 
 
ASSETS 
 
DEBT 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
225,047.78 
 
$ 
 
225,047.78 
 
$ 
$ 1,378,495.63 6,920,000.00 
20,010,000.00 
 
877,452.43 $ 3,041,900.97 
3,796.23 225,047.78 1,378,495.63 6,920,000.00 20,010,000.00 
 
1,010,713.92 3,452,769.36 
79.00 348,154.00 262,297.00 
8,903.03 213,896.16 1,073,526.04 7,505,000.00 
7,230,OOO.~0 
 
$ 28,308,495.63 $ 32,456,693.04 $ 21,105,338.51 
 
$ 2,138,865.71 
 
$ 52,449,208.38 
 
0.00 $ $ 2,138,865.71 $ 
 
0.00 
 
0.00 
 
0.00 $ 52,449,208.38 
 
$ 52,449,208.38 $ 45,840,066.69 
 
2,138,865.71 
 
2,595,101.87 
 
20,945.24 11,659.20 
10,234,128.66 2,048,929.00 
 
19,392.40 15,078.93 4,564.33 1,053,831.04 
 
23,978.40 5,103,411.32 
 
24,056.32 3,421 ,088.92 
 
$ 72,03U25.91 $ 52,973,180.50 
 
$ 2,138,865.71 $ 
 
225,047.78 $ 52,449,208.38 $ 28,308,495.63 $ 104,487,818.95 $ 74,078,519.01 
 
- 5- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds' 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
'Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Accrued Interest on Bonds Sold Premium on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Capital Leases Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
FUND BALANCE JUNE 30 
 
/ 
 
The notes to the general-purpose financial statements are an integral part of this statement. -6- 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 15,996,873.91 $ 
16,348,133.38 727,465.49 
$ 33,072,472.78 $ 
 
292,582.46 3,385,952.28 
668,727.23 
4,347,261.97 
 
$ .. 21,128,235.50 $ 
893,616.47 847,976.38 562,661.87 493,179.30 1.360,607.18 530,088.30 2,315,021.78 1,616,228.97 111,607.15 43.388.50 
16,485.04 959,360.87 
171,198.08 69,933.14 
 
1,496.964.15 
450.773.68 286,089.42 
2,396.63 3,169.22 
46,102.12 
488,600.72 1,600,209.73 
 
$ 31,119,588.53 $ $ 1.952,884.25 $ 
 
4,374,305.67 -27,043.70 
 
$ 
 
562,800.00 
 
-441.225.34 
 
$ 
 
121,574.66 
 
$ 2,074,458.91 $ 2,118,184.44 
 
-27,043.70 528,427.06 
 
1,552.84 -3,419.73 
 
$ 4,192,643.35 $ 
 
499,516.47 
 
 EXHIBIT "BOO 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 16,289,456.37 $ 14,745,280.42 
 
s 4,163,614.64 
 
3,385,952.28 20,511,748.02 
 
2,951,264.57 19,162,045.44 
 
$ 
 
273,411.97 
 
61,944.13 
 
1,731,548.82 
 
1,632,670.63 
 
s 
 
273,411.97 $ 4,225,558.77 $ 41,918,705.49 $ 38,491,261.06 
 
$ 22,625,199.65 $ 21,288,051.27 
 
s 
 
88,313.39 
 
5,810,269.28 
86,632.33 $ , 3,905,000.00 805,284.75 4,903.88 
 
1,344,390.15 1,134,065.80 
562,661.87 
495,575.9:~ 
1,363,776.40 618,401.69 
2,315,021.78 1,662,331.09 
111,607.15 531,989.22 1,616,694.77 6,769,630.15 
4,162,830.41 875,217.89 4,903.88 
 
1,411,138.78 1,399,221.56 
567,394.81 675,002.78 1,689,443.05 603,264.35 2,448,740.25 1,670,140.49 144,541.12 233,493.96 1,382,902.81 5,196,540.68 
3,501,577.08 830,531.24 5,669.52 
 
$ 5,985,215.00 $ 4,715,188.63 $ 46,194,297.83 $ 43,047,653.75 
 
$ -5,711,803.03 $ 
 
-489,629.86 $ -4,275,592.34 $ -4,556,392.69 
 
$ 
 
$ 
 
30,069.25 
 
16,100,000.00 
 
441,225.34 
 
s 16,571,294.59 $ 
 
33,393.70 $ 
 
33,393.70 30,069.25 
 
16,100,000.00 562,800.00 $ 441,225.34 -441,225.34 
 
33.393.70 $ 16,726,262.95 $ 
 
545,685.00 219,734.16 -219,734.16 
545,685.00 
 
$ 10,859,491.56 $ 1,891,400.44 
 
-456,236.16 $ 12,450,670.61 $ -4,010:7 07.69 
 
2,595,101.87 
 
7,133,113.81 
 
11,142,929.33 
 
1,552.84 -3,419.73 
 
-2,989.10 3,881.27 
 
s 12:750,892.00 $ 
 
2,138,865.71 $ 19,581,917.53 $ 
 
7,133,113.81 
 
- 7- 
 
 CITY OF GAINESVILLE BOARp OF EDUCATION - HALL COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
'YEAR ENDED JUNE 30 2002 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
BUDGET 
 
ACTUAL 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 15,743,802,00 $ 15,996,873.91 
 
15,622,699.00 704,555.00 
 
16,348,133.38 727,465.49 
 
Total Revenues 
 
$ 32,071,056.00 $ 33,072,472.78 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Capital Outlay Debt Service 
 
$ 21,069,796.48 $ 21,128,235,50 
 
948,096.69 952,956.94 568,838.00 616,148.00 . 1,520,210.00 645,865.00 2,417,838.00 1,642,627.00 137,998.00 
38,037.00 21,865.89 595,794.00 
 
893,616.47 847,976.38 562,661.87 493,179.30 1,360,607.18 530,088.30 2,315,021.78 1,616,228.97 111,607.15 
43,388.50 16,485.04 959,360.87 241.131.22 
 
Total Expenditures 
 
$ 31,176,071.00 $ 31.119,588.53 
 
Excess of Revenues over (under) Expenditures 
 
$ 
 
894,985.00 $ 1,952,884.25 
 
OTHER FINANCING SOURCES (USES) 
 
Other Sources Other Uses 
 
$ 
 
562,800.00 
 
$ -436,387.00 
 
-441 j225.34 
 
Total Other Financing Sources (Uses) 
 
$ -436,387.00 $ 
 
121,574.66 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 
 
458,598.00 $ 2,074,458.91 
 
FUND BALANCE JULY 1 2001 
 
- 2,238,076.00 
 
2,118,184.44 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
FUND BALANCE JUNE 30 2002 
 
$ 2,696,674.00 $ 4,192,643.35 
 
SPECIAL REVENUE FUND 
 
BUDGET 
 
ACTUAL 
 
$ 313,533.00 $ 
 
292,582.46 
 
3,638,162.13 
 
3,385,952.28 
 
295,438.00 
 
668,727.23 
 
$ 4,247,133.13 $ 4,347,261.97 
 
$ 1,561,352.42 $ 1,496,964.15 
 
535,259.00 323,046.27 
 
450,773.68 286,089.42 
 
3,502.89 1,500.00 
 
2,396:63 3,169.22 
 
49,035.00 
161,090.00 1,570,642.00 
40,000.00 
 
46,102.12 
488,600.72 1,600,209.73 
 
$ 4,245,427.58 $ 4,374,305.67 
 
$ 
 
1,705.55 $ 
 
-27,043.70 
 
$ 
 
1,705.55 $ 
 
262,366.60 
 
-27,043.70 528,427.06 
 
1,552.84 -3,419.73 
 
$ 264,072.15 $ 
 
499,516.47 
 
The notes to the general-purpose financial statements are an integral part of this statement. - 8- 
 
 . ~-~, 
CITY OF GAINESVILLE BOARD OF EDUCA nON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE.30, 2002 
 
EXHIBIT"D" 
 
Notel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The City of Gainesville Board ofEducation (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The School District uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
School activity accounts used to record the operations of the individual schools are included in the general-purpose financial statements as agency funds. To conform to generally accepted accounting principles, the financial activity of these accounts, should be recorded in the general-purpose financial statements by appropriate fund and fund type. 
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. 
. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. 
- 9- 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENtS 
JUNE 30, 2002 
 
EXHIBIT"D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
DEBT SERVICE FUND - the fund used to.account for the accumulation ofresources for, and the payment of, generallong-tenn principal, interest and paying agent fees . 
 
FIDUCIARY FUND TYPE - the fund used to account forassets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: 
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. 
ACCOUNT GROUPS 
GENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the School District. 
. GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capita11ease obligations. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources.arereported in the General Long-Term Debt Account Group. 
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. 
Governmental funds are accounted for using the modified accrual basis ofaccounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange.iinclude property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal 
-10 - 
 
 , .... :.-, ...; 
 
. '. .', 
 
. .\ .. 
 
CITY OF GAINESVILLE BOARD OF EDUCATIOl'.i - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHffiIT"D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACC<DUNTING POLICIES 
year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. . 
. Expenditures are generally recognized when the related fund liability is incurred. 
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts ar~ disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are 'recorded in the fiscal period covered by these financial statements. 
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. 
BUDGET 
The City of Gainesville Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable .funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This fmal budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. 
- 11 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHffiIT"D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value, I The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
(4) Obligations of any corporation of the United States government, 
(5). Prime banker's acceptances, 
(6) The Local Government InvestmentPool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
(7) Repurchase agreements, and 
(8) Obligations of other political subdivisions of the State of Georgia. 
RECEIVABLES 
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
PROPERTY TAXES 
The City ofGainesville County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 4,2001 (levy date). Taxes were due on January 4,2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 
- 12- 
 
 .' ,.r ' 
CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30.2002 
 
EXHmITlD" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
2001 tax digest are reported as revenue in fiscal year 2002. The Gainesville City Clerk bills and collects the property taxes for the School District, withholds 1% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $16,348,133.38 and for school bonds amounted to $852,676.77. 
 
Tax millage rates levied for the 2001 tax year (calendar year) for the City of Gainesville Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
6.99 mills 
~.mills 
 
7.34 mills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,310,937.87 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $5,595,565.78 has been collected or on September 30, 2002, whichever occurs first. 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
GENERAL FIXED ASSETS 
as, 
General fixed assets purchased, including capital outlay costs, are recorded expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. 
r 
 
- 13- 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHffiIT"D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
LONG-TERM DEBT AGREEMENT 
Prior to January 1, 1994, the City of Gainesville Board of Education was a component unit of the City of Gainesville, Georgia and was thereby not authorized to issue debt. Accordingly, the City of Gainesville, Georgia issued General Obligation Bonds to provide funds for the acquisition and construction of major school facilities. The general obligation bonds issued during this time are direct obligations and pledge the full faith and credit ofthe City of Gainesville. However, the City of Gainesville Board ofEducation is required by House Bill 841 ofthe 1993 Session ofthe General Assembly to levy taxes for remittance to the City of Gainesville, Georgia in the amounts necessary to retire this outstanding debt. 
GENERAL OBLIGATION BONDS 
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
INTERFUND TRANSACTIONS 
The School District has the following types of interfund transactions: 
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. 
Note 2: DEPOSITS' 
COLLATERALIZAnON OF DEPOSITS Official Code of,Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not 
- 14- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"D" 
 
Note 2: DEPOSITS 
been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face 
value of such surety bond and the market value of securities pledged shall be equal to not less than 
11 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of anyone of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Horne Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne Loan Mortgage Association, and the Federal National Mortgage Association. 
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $20,281,058.65. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
- 15 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE30, 2002 
 
t 
EXHIBIT"D" 
 
:Note 2: DEPOSITS 
 
Category 1 - Cash that is insured (e.g, Federal depository.insurance) or collateralized with. securities held by the School District or by the School District's agent in the School District's name, 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. 
Category 3 - Uncollateralized deposits. (This includes 'anybank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) 
 
The School District'sdeposits are classified by risk' category at June 30, 2002, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 306,973.41 
 
2 
 
19,974,085.24 
 
3 
 
0.00 
 
Total 
 
$20,281,058.65 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
Note 4: GENERAL FIXED ASSETS 
 
The following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year: 
 
. Land 
 
Buildings Equipment 
 
Total 
 
Balance July 1,2001 
 
$ 194,840.76 $37,075,886.24 $ 8,569,339.69 $45,840,066.69 
 
Retroactive Restatement of Prior Year Balances 
 
0.00 552.402.00 -552.402.00. _ _---0--.0"=0 
 
Balance July 1,2001 Restated 
 
$ 194,840.76 $37,628,288.24 $ 8,016,937.69 $45,840,066.69 
 
Additions 
 
3,790,856.08 2,944,073.39 201,080.68 6,936,010.15 
 
Deductions 
 
326,868.46 326,868.46 
 
Balance June 30, 2002 
 
$ 3.985.696.84 $40,572.361.63 $ 7,891.149.91 $52.449,208.38 
 
- 16- 
 
 CITY OF GAINESVILLE BOARD OF EDUCA"fION - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2bOi 
 
EXHffiIT"D" 
 
Note 5: RISK MANAGEMENT 
 
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation and dental care. 
 
The School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, job related illness or injuries to employees and acts ofGod. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. 
 
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
2001 2002 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
$ 
 
0.00 $ 10,605.27 $ 10,605.27 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
6,500.00 $ 
 
6.500.00 $ 
 
0.00 
 
The School District has established a limited risk management program for dental insurance claims. A premium is charged by the General Fund to each user fund ofthe basis of employee participation in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred and the amount ofthat loss can be reasonably estimated. 
 
Changes in the dental claims liability during the last two fiscal years are as follows: 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
2001 2002 
 
$ 
 
0.00 $ 236,180.35 $ 236,180.35 $ 
 
0.00 
 
$ 
 
0.00 $ 258,288.76 $ 258,288.76 $ 
 
0.00 
 
The School District has purchased ~urety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent Treasurer 
 
$ 50,000.00 $ 50,000.00 
 
- 17 - 
 
  CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 
 
EXHmIT"D" 
 
Note 6: GENERAL LONG-TERM DEBT 
 
CAPITAL LEASES The City of Gainesville Board ofEducation has entered into various lease agreements as lessee for portable classrooms and facilities, These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception, The following is an analysis of the carrying value of general fixed assets acquired under outstanding capital leases as of June 30, 2002: 
 
General Fixed Assets 
 
Buildings 
 
$ 1.998,085.00 
 
Note 6: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 1997 General Government - Series 2001 General Government - Series 2002 
 
4,00% - 5,00% 2,55% - 3,50% 3.125% - 3,60% 
 
$ 3,910,000.00 . 8,500,000,00 7,600,000.00 . 
 
$20,010,000.00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were a~ follows: 
 
- 18 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHffilT"D" 
 
At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
2003 2004 2005 2006 2007 2008 - 2011 
Total Principal and Interest 
Deduct: Imputed Interest 
Net Present Value of Future Minimum Lease Payments 
 
Capital Leases 
 
Long-Term Debt 
Agreement 
 
General Obligation 
Bonds 
 
Total Debt 
 
$ 348,407.63 $ 797,894.25 $ 4,621,442.96$ 5,767,744.84 
 
368,870.16 
 
983,778.00 3,066,783.00 4,419,431.16 
 
368,870.16 
 
984,263.00 3,346,423.50 4,699,556.66 
 
296,889.19 
 
984,328.00 3,793,897.00 5,075,114.19 
 
153,081.37 
 
986,888.00 3,799,436.00 4,939,405.37 
 
3,971,263.00 3,805.486.00 7,776,749.00 
 
$ 1,536,118.51 $ 8708414.25 $22 433 468 46 $32678001.22 
 
157,622.88 
 
$ 1.378 495 63 
 
Note 7: ON-BEHALF PAYMENTS 
 
The School District has recognized revenues and expenditures in the amount of $297,529,18 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies, 
 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $270,843, 18 
 
- 19- 
 
 CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT "DII 
 
Note 7: ON-BEHALF PAYMENTS 
 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $26,686.00 
 
Note 8: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofsignificant outstanding construction or renovationcontracts executed 
 
by the School District as of June 30, 2002, together with funding available: 
 
' 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
03/02S-776-030 
 
$ 7.321.348.65 $ 1.804.416.00 
 
The amounts described in this note are not reflected in the general-purpose financial statements. 
 
Note 9: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The School District is a defendant in a legal proceeding pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general-purpose financial statements. 
 
Note 10: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
- 20- 
 
 ;' 
CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"D" 
 
Note 10: RETIREMENT PLANS 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2002 2001 2000 
 
100% 100% 100% 
 
$ 1,790,242.34 . $ 2,061,498.43 $ 1,967,166.99 
 
- 21 - 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 
 
ASSETS 
Cash and Cash Equivalents Investments 
Accounts Receivable Inventories 
Food Donated Commodities Purchased Food 
Total Assets 
LIABILITIES AND FUND EQUITY LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue 
Total Liabilities. FUND EQUITY 
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity 
Total Liabilities and Fund Equity 
See notes to the general-purpose financial statements. 
- 22- 
 
SCHOOL FOOD 
SERVICES FUND 
 
$ 
 
531,221.01 
 
LOTTERY PROGRAMS 
 
$ 
 
115,239.14 
 
20,945.24 11,659.20 
 
$ 
 
563,825.45 $ 
 
115,239.14 
 
, 
 
$ 
 
114,806.90 
 
$ 
 
19,292.34 
 
432.24 
 
77,325.90 
 
$ 
 
96,618.24 $ 
 
115,239.14 
 
$ 
 
20,945.24 
 
11,659.20 
 
434,602.77 $ 
 
0.00 
 
$ 
 
467,207.21 $ 
 
0.00 
 
$ 
 
563,825.45 $ ==~~1=1=5,:2,39,.1=4= 
 
 EXHIBIT"E" 
 
FEDERAL PROGRAMS 
 
ATHLETIC FUND 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
18,275.35 $ 
 
549,496.36 $ 
 
514,027.48 
 
14,033.91 
 
14,033.91 
 
13,483.66 
 
$ 
 
410,846.00 
 
526,085.14 
 
428,203.77 
 
20,945.24 11,659.20 
 
19,392.40 15,078.93 
 
$ 
 
410,846.00 $ 
 
32,309.26 $ 1.122,219.85 $ =====9=90=,=1=86=.=2=4= 
 
$ 
 
185,770.62 
 
47,591.07 
 
177,484.31 
 
$ 
 
410,846.00 
 
$ 
 
300,577.52 $ 
 
151,725.80 
 
67,315.65 
 
75,188.43 
 
254,810.21 
 
229,659.15 
 
79.00 
 
5,106.80 
 
$ 
 
622,703.38 $ 
 
461,759.18 
 
$ 
 
20,945.24 $ 
 
19,392.40 
 
11,659.20 
 
15,078.93 
 
$ 
 
0.00 $_~-=32=,30=9=.26~ 
 
466,912.03 
 
493,955.73 
 
$ 
 
0.00 $ 
 
32,309.26 $ 
 
499,516.47 $_---'=.L5.2:.8.,:4:2.7~:.0:.6.. 
 
$ 
 
410,846.00 $ 
 
32,309.26 $ 1,122,219.85 $=====9=9=0,=1=8=6.=2=4= 
 
- 23- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 
 
/ 
FUND BALANCE JUNE 30 
 
$ 
 
467,207.21 $======0=.00~ 
 
See notes to the general-purpose financial statements. - 24- 
 
 EXHIBIT"F" 
 
FEDERAL PROGRAMS 
 
ATHLETIC FUND 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 2,199,437.82 $ 
$ 2,199,437.82 $ 
 
$ 370,823.20 370,823.20 $ 
 
292,582.46 $ 3,385,952.28 
668,727.23 
4,347,261.97 $ 
 
180,980.00 2,951,264.57 
456,133.16 
3,588,377.73 
 
$ 1,296,121.69 
450,773.68 286,089.42 
2,396.63 3,169.22 46,102.12 114,785.06 $ 
 
$ 2,199,437.82 $ 
 
$ 
 
0.00 $ 
 
$ 
373,815.66 373,815.66 $ 
-2,992.46 $ 
 
1,496,964.15 $ 
450,773.68 286,089.42 
2,396.63 3,169.22 46,102.12 488,600.72 1,600,209.73 
4,374,305.67 $ 
-27,043.70 $ 
 
1,226,739.64 
436,141.42 182,338.46 
5,849.19 
39,989.51 233,493.96 1,357,251.79 
3,481 ,803.97 
106,573.76 
 
33,876.28 
 
$ 
 
0.00 $ 
 
-2,992.46 $ 
 
-27,043.70 $ 
 
140,450.04 
 
0.00 
 
35,301.72 
 
528,427.06 
 
387,084.85 
 
1,552.84 -3,419.73 
 
-2.989.10 3,881.27 
 
$ 
 
0.00 $ 
 
32,309.26 $ 
 
499,516.47 $=~~5= 28=,42=7~ .06~ 
 
- 25- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 
 
ASSETS Cash and Cash Equivalents Investments ' 
Total Assets 
LIABILITIES AND FUND EqUITY LIABILITIES 
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable 
Total Liabilities FUND EqUITY 
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity 
Total Liabilities and Fund Equity 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
467,834.34 $ 10,234,128.66 
 
,J 
 
$ 
 
467,834.34 $ 10,234,128.66 
 
$ 10,234,128.66 
 
$ 
 
467,834.34 
 
0.00 
 
$ 
 
467,834.34 $ 10,234,128.66 
 
$ 
 
467,834.34 $ 10,234,128.66 
 
See notes to the general-purpose financial statements. - 26- 
 
 EXHIBIT"G" 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
$ 1,515,901.00 $ 
 
LOTIERY PROJECT 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 3D, 2001 
 
533,028.00 $ 12,750,892.00 $ 
 
837,569.40 
 
1,744,217.20 
 
$ 1,515,901.00 $ 
 
533,028.00 $ 12,750,892.00 $ 2,581,786.60 
 
$ 
 
78,976.84 
 
958.32 
 
348,154.00 
 
262,297.00 
 
$ 
 
690,386.16 
 
$ 1,515,901.00 $ 0.00 
$ 1,515,901.00 $ 
 
$ 10,234,128.66 $ 
 
533,028.00 
 
2,048,929.00 
 
0.00 
 
467,834.34 
 
533,028.00 $ 12,750,892.00 $ 
 
1,053,831.04 
837,569.40 1,891,400.44 
 
$ 1,515,901.00 $ 
 
533,028.00 $ 12,750,892.00 $ 2,581,786.60 
 
- 27- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 
 
REVENUES 
State Funds Other Funds 
Total Revenues ~ 
EXPENDITURES 
Current Support Services Business Administration 
Capital Outlay Land and Land Improvements Building and Building Improvements 
Debt Service Principal 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Premiums on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
FUND BALANCE JUNE 30 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
42,170.00 $ 
 
231,241.97 
 
$ 
 
42,170.00 $ 
 
231,241.97 
 
$ 
 
88,313.39 
 
$ 
 
40,758.99 
 
1,876,950.41 
 
86,632.33 
 
$ 
 
127,391.32 $ 1,965.263.80 
 
$ 
 
-85,221.32 $ -1,734,021.83 
 
$ 
 
30,069.25 
 
16,100,000.00 
 
$ -284,513.74 
 
-5,215.749.80 
 
$ -284,513.74 $ 10,914,319.45 
 
$ -369,735.06 $ 9,180.297.62 
 
837,569.40 
 
1,053.831.04 
 
$ 
 
467,834.34 $ 10,234.128.66 
 
See notes to the general-purpose financial statements. - 28- 
 
 EXHIBIT"H" 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
LOTTERY PROJECT 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
39,942.20 
 
$ 
 
s 0.00 
 
0.00 $_---:::.:..::2:.z7..3:.,.:4..1.:.1:..::9.:7:.... 
 
257,907.81 
 
$ 
 
0.00 $ 
 
0:..:.::.;00::... $ 
 
273,411.97 $ _---::2:9.7:,8.:5.0..0=1=~ 
 
$ $ 3,892,559.88 
$ 3,892,559.88 $ $ -3,892,559.88 $ 
 
0.00 $ 
 
88,313.39 
 
3,892,559.88 1.917,709.40 $ 
 
4,269,637.47 
 
86,632.33 
 
81,264.88 
 
0.00 $ 5,985,215.00 $ 4,350,902.35 
 
0.00 $ -5,711,803.03 $ -4,053,052.34 
 
$ 5,408,460.88 $ $ 5,408,460.88 $ 
 
$ 
 
30,069.25 
 
533.028.00 
 
16,100,000.00 5,941,488.88 $ -5,500,263.54 
 
. 445,954.06 -260,096.18 
 
533,028.00 $ 16,571,294.59 $ 
 
185,857.88 
 
$ 1,515,901.00 $ 0.00 
 
533,028.00 $ 10,859,491.56 $ -3,867,194.46 
 
0.00 
 
1,891,400.44 
 
5,758.594.90 
 
$ 
 
533,028.00 $ 12,750,892.00 $ 1,891,400.44 
 
- 29- 
J 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING BALANCE SHEET DEBTSERVICE FUND JUNE 30, 2002 
 
EXHIBIT "I" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
s 102,145.40 
 
1,456,149.56 $ 583,907.90 
 
1,456,149,56 $ .2,005,962.14 
 
686,053.30 
 
660,439.88 
 
Total Assets 
 
$ . 102,145.40 $ 2,040,057.46 $ 2,142,202.86 $ 2,666,402.02 
 
LIABILITIES AND FUND EaUITY 
 
LIABILITIES 
 
Cash Overdraft 
 
$ 
 
FUND EgUITY 
 
Fund Balances 
 
Reserved 
 
For Debt Service 
 
$ 
 
Unreserved 
 
Undesignated 
 
Total Fund Equity 
 
s 
 
3,337.15 
98,808.25 $ 0.00 
98,808,25 $ 
 
$ 
 
s 3,337.15 
 
71,300.15 
 
2,040,057.46 $ 2,138,865.71 $ 2,595,101.87 
 
0.00 
 
0.00 
 
0.00 
 
2,040,057,46 $ 2,138,865.71 $ 2,595,101.87 
 
Total Liabilities and Fund Equity $ 102,145.40 $ 2,040,057.46 $ 2,142,202.86 $ 2,666,402.02 
 
See notes to the general-purpose financial statements. 
 
- 30- 
 
 <'. 
 
'\. 
CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2002 
 
EXHIBIT "J" 
 
FUND BALANCE JUNE 30 
 
$ 98,808.25 $ 2,040,057.46 $ 2,138,865.71 $ 2,595,101.87 
 
See notes to the general-purpose financial statements. 
 
- 31 - 
 
\ 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY . COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2002 
 
EXHIBIT"K" 
 
SPECIAL ACCOUNT 
ASSETS Cash and Cash Equivalents 
 
BALANCE JULY 1, 2001 
 
ADDITIONS 
 
DEDUCTIONS 
 
BALANCE JUNE 30, 2002 
 
$ 
 
2,386.25 $ 
 
686.79 $ 
 
1,507.52 $ 
 
1,565.52 
 
LIABILITIES Funds Held for Others 
STUDENT ACTIVITIES ACCOUNT ASSETS 
Cash and Cash Equivalents Investment 
 
$ 
 
2,386.25 $ 
 
686.79 $ 
 
1,507.52 $==1~ ,56~ 5.5~ 2 
 
$ 187,964.22 $ 723,873.77 $ 
 
21,307.21 
 
869.52 
 
719,823.25 $ 
 
192,014.74 22,176.73 
 
$ 209,271.43 $ 724,743.29 $ 719,823.25 $ 214,191.47 
 
LIABILITIES Funds Held for Others 
 
$ 209,271.43 $ 724,743.29 $ 719,823.25 $=== 21~4,= 19=1.=47= 
 
FLEXIBLE SPENDING ACCOUNT ASSETS 
Cash and Cash Equivalents 
LIABILITIES Funds Held for Others 
TOTALS - AGENCY FUNDS ASSETS 
Cash and Cash Equivalents Investments 
 
$ 
 
2,238.48 $ 62,815.30 $ 
 
55,762.99 $=====9,=29=0=.7=9= 
 
$ 
 
2,238.48 $ 62,815.30 $ 
 
55,762.99 $====9=,2=90=.7=9= 
 
$ 192,588.95 $ 787,375.86 $ 
 
21,307.21 
 
869.52 
 
777,093.76 $ 
 
202,871.05 22,176.73 
 
$ 213,896.16 $ 788,245.38 $ 777,093.76 $ 225,047.78 
 
LIABILITIES Funds Held for Others 
 
$ 213,896.16 $ 788,245.38 $ 
 
See notes to the general-purpose financial statements. 
 
- 32- 
 
777,093.76 $ 
 
225,047.78 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "1n 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutrition Program Summer School Food Service Program for Children 
 
10,553 10.555 
10.559 
 
NlA 
 
$ 293,790,62 
 
(2) 
 
NlA 
 
802,885,51 $ 
 
1,510,371.40 (3) 
 
N/A 
 
12,504.15 
 
12,504.15 
 
Total Child Nutri1ion Cluster 
 
$ 1,109,180.28 $ 
 
1,522.875.55 
 
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 
 
10.550 
 
N/A 
 
77,334.18 
 
77,334.18 
 
Total U. S, Department of Agriculture 
 
$ 1,186,514.46 $ 
 
1,600,209.73 
 
Education, U, S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Special Projects 
 
84.027 84.173 84.027 
 
N/A 
 
$ 339,362,65 $ 
 
NlA 
 
27,126.00 
 
NlA 
 
5,856.23 
 
339,362.65 27.126.00 5,856.23 
 
Total Special Education Cluster 
 
$ 372,344,88 $ 
 
372,344.88 
 
Other Programs 
 
Pass-Through From Georgia Department of Education 
 
Elementary and Secondary Education Act 
 
Title I 
 
Grants to Local Educational Agencies 
 
84.010 
 
NlA 
 
1,149,933.82 
 
1,149,933.82 
 
Title II 
 
Eisenhower Professional Development 
 
84.281 
 
NlA 
 
34,601,75 
 
34,601.75 
 
Title VI 
 
Innovative Education Program Strategies 
 
84,298 
 
N/A 
 
34,800.43 
 
34.800,43 
 
Class Size Reduction 
 
84.340 
 
NlA 
 
138.344.00 
 
138.344.00 
 
Title VII 
 
Immigrant Education 
 
84.162 
 
NlA 
 
99.837.33 
 
99,837,33 
 
Safe and Drug-Free Schools 
 
84.186 
 
N/A 
 
21.225.01 
 
21,225.01 
 
Stewart B. McKinney Homeless Assistance Act 
 
Education for Homeless Children and Youth 
 
84,196 
 
N/A 
 
47,812.00 
 
47,812.00 
 
Technology Literacy Challenge Fund Grant 
 
84.318 
 
N/A 
 
100,172.51 
 
100,172.51 
 
Vocational Education - Basic Grants to States 
 
High School Program Basic Grant 
 
84.048 
 
N/A 
 
44,906,00 
 
44,906.00 
 
Pass-Through From Piedmont Migrant Education Agency 
 
Elementary and Secondary Education Act 
 
Title I Migrant Education 
 
84,011 
 
N/A 
 
116,849.71 
 
116,849.71 
 
- 33- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Education, U. S. Department of Other Programs Pass-Through From United Way of Metropolitan Atlanta Elementary and Secondary Education Act Community Technology Centers 
 
84.341 
 
NlA 
 
$ 34,839.14 $ 
 
34,839,14 
 
Total U, S. Department of Education 
 
$ 2,195,666.58 $ 
 
2,195,666.58 
 
Transportation, U. S. Department of Pass-Through From The Georgia Department of Public Safety D.R.I.V,E. Program 
 
20.600 
 
N/A 
 
$ 
 
3,771.24 $ 
 
3,771.24 
 
Total Federal Financial Assistance 
 
$ 3,385,952.28 $ 
 
3,799,647.55 
 
N/A = Not Available 
 
Notes to the Schedule of Expenditures of Federal Awards 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Other Funds, Expenditures are not maintained by fund source, 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number, 
 
The School District did not provide Federal Assistance to any SUbrecipient. 
 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Gainesville Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements. 
 
See notes to the general-purpose financial statements. 
 
- 34 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
GRANTS Community Affairs, Georgia Department of Governor's Emergency Fund 
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Special Education Itinerant Gifted Student - Category VI Alternative Education Program English Speakers of onier Languages (ESOL) . Media Center Program 20 Days Additional Instructions Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Food Services Vocational EducatiOn Other State Programs Apprenticeship Program Environmental Science Program Health Insurance Mentor Teachers Post Secondary Options Preschool Handicapped Program Statewide Local Education Improvement Lottery Programs Assistive Technology Computers in the Classroom 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 
 
40,000.00 
 
$ 
 
40,000.00 
 
742,641.00 951,782.00 2,075,494.00 987,011.00 978,371.00 558,979.00 1,723,869.00 1,599,941.00 451,542.00 
14,969.00 139,688.00 416,748.00 148,493.00 
10,481.00 607.00 
132,290.00 ,140,189.00 1,040,315.00 361,787.00 108,066.00 
68,815.00 2,110,775.00 
 
304,409.00 83,985.00 20,000.00 
100,240.00 19,107.00 21,676.00 
-2,058,759.75 2,149,450.00 
$ 21,314.58 
35,000.00 750.00 
270,843.18 1,989.00 2,475.00 
78,650.00 116,205.90 
 
91,740.00 
6,837.46 194,005.00 
 
26,686.00 
 
742,64foo 951,782.00 2,075,494.00 987,011.00 978,371.00 558,979.00 1,723,869.00 1,599,941.00 451,542.00 
14,969.00 139,688.00 416,748.00 148,493.00 10,481.00 
607.00 132,290.00 140,189.00 1,040,315.00 361,787.00 108,066.00 68,815.00 2,110,775.00 
304,409.00 83,985.00 20,000.00 
100,240.00 19,107.00 21,676.00 
-2,058,759.75 2,149,450.00 
91,740.00 21,314.58 
35,000.00 750.00 
270,843.18 1,989.00 2,475.00 
78,650.00 116,205.90 
6,837.46 194,005.00 
26,686.00 
 
$ 15,996,873.91 $ 
 
292,582.46 $ 16,289,456.37 
 
See notes to the general-purpose financial statements. 
 
- 35- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENPED JUNE 30 2002 
 
SCHEDULE "3" 
 
PROJECT 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) (4) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) (4) 
 
PROJECT STATUS 
 
Payments of a portion of the previously incurred obligation debts of capital outlay projects of the City of Gainesville School District are specifically 1986, 1991, 1993 bonds becoming due January 1, 1998 through and including December 31,2002 
Paying a portion of the payments, including principal and interest, due on the Gainesville City School District's Series 1991 and 1993 Bonds 
Construction of additional classrooms, instructional and support spaces, as well as, remodeling and renovating existing classrooms, instructional and support spaces, and to provide furnishings, equipment and fixtures for such areas at existing existing elementary and middle schools 
Acquisition, construction, and equipping of new academic wing, renovation of existing instructional and support spaces, construction of a new gymnasium at the high school 
Acquiring, constructing and equipping of two new elementary schools, additional classrooms, instructional and support space, remodeling, renovating, and equipping of existing classrooms, instructional and support spaces. acquiring furnishings, equipment and fixtures for new and existing facilities, and acquiring and conducting site preparation of real estate for School District purposes 
 
$ 2,038,737.00 $ 2,038,737.00 $ 410,501.32 $ 1,124,000.00 
 
Ongoing 
 
2,000,000.00 
 
2,000,000.00 
 
Ongoing 
 
4,105,931.00 
 
4,105,931.00 
 
3,083,230.03 Complete 
 
14,080,332.00 14,080,332.00 
 
1,812,314.92 11,780,596.87 
 
Ongoing 
 
23,462,770.00 23,462,770.00 
 
3,892,559.88 
 
Ongoing 
 
$ 45,687,770.00 $ 45,687,770.00 $ 6,115,376.12 $ 15,987,826.90 
 
(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. 
 
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. 
 
(3) The voters of Hall County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. 
 
(4) In addition to the expenditures shown above, the School District incurred interest and other expense to provide advance funding for the above projects as f~lIows: 
 
Prior Year 
 
$ 1,778,514.42 
 
Current Year 
 
226,710,00 
 
Total 
 
$ 2,005,224.42 
 
/ 
 
See notes to the general-purpose financial statements. 
 
- 37- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM laBE) 
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "4" 
 
DESCRIPTION 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE aBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
Direct Instructional Programs 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program-Early Intervention Program 
 
Primary Grades (1-3) Program 
 
Primary Grades-Early Intervention (1-3) Program, 
 
Upper Elementary Grades (4-5) Program 
 
Middle School (6-8) Program 
 
. High School General Education (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students with Disabilities 
 
Category I 
 
Category II 
 
'Category III 
 
Category IV 
 
Gifted Student - Category VI 
 
Remedial Education Program 
 
Alternative Education PrQgram 
 
English Speakers of Other Languages (ESOL) 
 
s s 977,698.00 
 
856.301.72 
 
1.253,035.00 
 
998,525.10 
 
2,732,417.00 
 
3,192,757.17 
 
1.299.414,00 
 
916,981.08 
 
1,275,254.00 2.050,104,72 
 
2.269.498.00 
 
2,317,790,50 
 
. 2,106.345,00 
 
2,758.556,59 
 
594,462,00 
 
600,080.29 
 
962.356.00 
 
174,162.00 
184,561,00 1,369,589.00 
 
302,756.46 951,093.69 175.058.93 269,836.78 
19,645,77 174.181.40 1,196,653.05 
 
24.298.52 $ 168,281.99 438,169.72 
29,312,33 103,040,57 320,534.13 339,413,78 55,966,29 
2,114,37 6,308,92 54,170.57 1.119.78 
-7,978.32 
27,759.62 2,507.93 
 
880,600,24 1.166,807.09 3,630.926,89 
946,293.41 2.153,145.29 2.638.324.63 3,097.970.37 
656,046.58 
2,114,37 309.065.38 1,005,264.26 176,178,71 277.815.10 
19,645.77 201.941.02 1,199,160,98 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
 
$ 
 
15.198.791.00 $ 16,780.323.25 $ 1.580.976.84 $ 18,361.300.09 
 
Media Center Program Staff and Professional Development 
 
476.299.00 90,597.00 
 
472.572.96 30,891.35 
 
82.297.85 67,902.21 
 
554,870.81 98,793.56 
 
TOTALQBEFORMULAFUNDS 
 
$ 
 
15.765.667.00 $ 17,263,787.56 $ 1,731,176.90 $ 19,014.964.46 
 
(1) Comprised of State Funds plus Local Five Mill Share, 
,. 
 
See notes to the general-purpose financial statements. 
 
- 38- 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION .... HALL COUNTY GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM CqBEl 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "5" 
 
Centennial Elementary School Enota Elementary School Fair Street Elementary School Gainesville High School Gainesville Middle School Central Office (Alternative Education Program) Transportation Facility Other Auxiliary Facility 
TOTAL 
(1) Comprised of State Funds plus local Five Mill Share. 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
2,942,417.00 $ 
 
3,388,983.84 
 
4,018,057.00 
 
4,262,857.74 
 
1,714,183.00 
 
2,670,327.30 
 
3,432,552.00 
 
4,304,336.94 
 
2,907,021.00 
 
3,558,333.20 
 
184,561.00 
 
21,575.03 . 
 
270.00 
 
154,616.04 
 
.$ 
 
15,198,791.00 $ 18,361,300.09 
 
See notes to the general-purpose financial statements. - 39- 
 
 SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUSSELl. \V. "Jr"TON 
STATE AUDITOR (404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, s.w, Suite 214 
Atlanta. Georgia 30334-R400 
September 27,2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Boar~ of Education 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements ofCity ofGainesville Board ofEducation as ofand for the year ended June 30,2002, and have issued our report thereon dated September 27,2002. This report was qualified for a departure from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 
Compliance 
As part of obtaining reasonable assurance about whether City of Gainesville Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 
\ 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered City of Gainesville Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 
2002YB-IO 
 
 control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use ofthe management, members ofthe City of Gainesville Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
lli4 
Ru ell W. Hinton State Auditor 
RWH:as 2002YB-IO 
 
 RUSSELl. \\'. HINTON 
STATE AUDITOR (404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-R400 
September 27,2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Gainesville Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of City of Gainesville Board of Education with the types of 
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular 
A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. City of Gainesville Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility of City ofGainesville Board of Education's management. Our responsibility is to express an opinion on City ofGainesville Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance.with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements.referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Gainesville Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City ofGainesville Board ofEducation's compliance with those requirements. 
2002SA-IO 
 
 In our opinion, the City of Gainesville Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002. 
Internil1 Control Over Compliance 
The management of City of Gainesville Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Gainesville Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions .. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use ofthe management, members ofthe City of Gainesville Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
~~ 
Rus 11 W. Hinton State Auditor 
RWH:as 2002SA-IO 
, 
I 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY . AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIQNED COSTS FINDING CONTROL NUMBER AND STATUS No matters were reported 
r 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 
I SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Cityof Gainesville Board of Education's financial statements was qualified for a departure from generally accepted accounting principles. 
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Gainesville Board of Education did not disclose any reportable conditions related to the financial statements. 
3. Noncompliance Material to the Financial Statements The audit of the City of Gainesville Board of Education disclosed no instances of . noncompliance that were deemed to be material to the financial statements. 
4. Reportable Conditions in Internal Control Over Maior Programs The audit report for the City of Gainesville Board of Education did not disclose any reportable conditions in internal control over major programs. 
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City ofGainesville Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Required to be Reported by Section ~510(a) ofOMB Circular A-B3 The City ofGainesville Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.027 Individuals with Disabilities Education Act - Part B - Special Education Special Projects 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The City of Gainesville Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-B3. 
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CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
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